Fitch Ratings has affirmed its “AA-” rating on approximately $842.1 million of bonds issued on behalf of Yale New Haven Health System. The rating outlook is stable.
Key rating drivers include: Yale New Haven’s clinical reputation; strong historical operating results; low debt burden; sizable capital spending; and, adequate liquidity.
Fitch said Yale New Haven has been producing solid profitability, with operating income averaging approximately $150 million annually over the last four years, most recently $159.7 million in the fiscal year ended Sept. 30, 2015, equal to operating margins of 4.4 percent.
Yale’s maximum annual debt service of $62 million was another favorable factor. It represented what is considered a very low 1.7 percent of total revenues in fiscal 2015 and compared favorably against Fitch’s “AA” category median of 2.4 percent.
